Should you invest all capital in one stock?

[Good-Person]

There are many people out there who tend to invest money in the stock market. However, some people believe that a specific stock may perform much better than all others and they tend to invest all of their capital in one stock. So, do you think that this is a smart move?

 

[deucher]

Not always, as for me, if you, for example, want to invest in gold, then it is clear that gold will not disappear even in 100 years, but is it profitable? After all, if the stability is high, then the profit is low, so you need to take risks and invest in more profitable, but different projects

 

[Nomad]

Stock market is highly volatile and risky, Therefore, investing entire funds in a single stock is not a good idea, you will have to diversify your investment by investing in multiple stocks. You will also have to diversify by investing inb multiple markets not just one market.

 

[Timgab]

There are many people out there who tend to invest money in the stock market. However, some people believe that a specific stock may perform much better than all others and they tend to invest all of their capital in one stock. So, do you think that this is a smart move?

This can be very beneficiary when times seem to favor. But the risk in it is not worth trying as the probability is so low. It is not advised to invest all funds in a single stock, but rather disburse them.